2010 FIFA World Cup Provides $45 Million Boost to the South Africa Economy
Wednesday, July 7, 2010
The South African economy has seen an initial boost in visitor spending related to the 2010 FIFA World Cup(TM), according to new cardholder spending data from Visa Inc.
During the period leading up to the kickoff of the FIFA World Cup(TM) and the first week of tournament matches (1 June through 20 June), spending by international visitors in South Africa on Visa-branded payment cards exceeded US$128 million (R974 million), up 54 percent from US$83 million (R629 million) during the same period in 2009. The number of transactions from 1 June through 20 June was 900,000 (45,000 per day on average), up 60 percent from nearly 600,000 (30,000 a day on average) during the same 20 days in 2009.
The money spent by international visitors on their Visa credit, debit and prepaid cards on the first ten days of the FIFA World Cup(TM) (Friday, June 11 through Sunday, June 20) alone showed an increase of 81 percent over the same period in 2009.
Visa spending data indicates that the United Kingdom, followed by the United States, Australia, France and Brazil have been the strongest contributors to tourism spending to date. These five countries alone accounted for 51 percent of spending. Over 90 percent of spending was in typical leisure and business travel categories - accommodation, restaurants, retail, auto rental and air travel.
"You can see it for yourself on the streets and in the shopping malls of the nine host cities and now we're seeing the real-time data. The international visitors have come and they are spending with their Visa cards. The spending is spread right across the 159,000 merchants that accept Visa in South Africa," Michael Lynch, Global Head of Sponsorship Management at Visa Inc. said.
"The sponsorship of the 2010 FIFA World Cup(TM) in South Africa is working extremely well for Visa with promotional activities occurring in close to 100 countries, involving 500 financial institutions and merchants. We also have approximately 4,000 competition prize winners coming to South Africa for the tournament and the first waves of those have had a great experience," Lynch added.
Top Contributors to Visitor Spending in South Africa from June 1 - 20,
2010, as Measured by Spending on Visa-Branded Payment Cards (USD1 = R7.58)
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Ranking Country/Territory Total spend Total spend Change
(USD) (Rand) (%)
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1 United Kingdom $25.3 million R192 million 24
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2 United States $25.2 million R191 million 58
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3 Australia $6.2 million R47 million 108
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4 France $4.7 million R35 million 60
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5 Brazil $4.1 million R31 million 390
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6 Germany $3.9 million R30 million 55
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7 Mozambique $3.8 million R29 million (20)
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8 Botswana $3.5 million R26 million 21
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9 Canada $3.4 million R26 million 43
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10 Mexico $2.9 million R22 million 527
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Visa provides the most widely accepted payment card in the world, meeting the needs of mobile consumers reaching for credit, debit and prepaid cards wherever and whenever they travel. According to the 2010 South Africa Tourism Outlook report recently released by Visa Inc., international travelers using their Visa payment cards spent over US$1.79 billion while visiting South Africa during 2009 and $566 million during the first quarter of 2010.
Visa is one of six global FIFA partners with exclusive global category rights through 2014, and is the exclusive card for the 2010 FIFA World Cup(TM). In recognition of Visa's sponsorship of the 2010 FIFA World Cup South Africa(TM), Visa credit, debit and prepaid cards are the only payment cards accepted, along with cash, at all FIFA stadiums and the Onsite Stadium Merchandise Booths.
About Visa
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks-VisaNet-that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com
Labels: Soccernomics
posted @ 2:03 PM,
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Buy everything you can think of, including "traditional" art
Friday, June 11, 2010
Buy Buy World Cup
Labels: Soccernomics
posted @ 12:12 PM,
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World Cup Impac on Bussiness
Thursday, June 10, 2010
World Cup fever is set to trigger headaches for HR and IT managers at businesses big and small around the world.
For one, there’s likely to be a higher than normal level of absenteeism in certain countries when their nations are playing. Italians, for example, maybe unusually absent from work June 14, 20 and 24 while Brits may be scarce June 12, 18 and 23.
Then there’s the issue of network traffic: With games streamed live and on-demand, more than a few employees may be tempted to catch up on the action online. Given the density of data they’ll be pulling, it could cause corporate networks to slow to a crawl as all those video packets are routed through.
Of course, company executives can attempt to nip this all in the bud with a well-timed missive reminding staff that work is work and play is play and that World Cup games are strictly for outside work consumption.
But that wouldn’t be very sporting, says Susan Doniz, former CIO at multi-national giant Proctor and Gamble and newly promoted to run global service for P&G’s line of beauty and grooming products.
“We had this issue when I was in Argentina with P&G,” she says. “I wanted to book a meeting and everyone said, ‘oh, no, you can’t at that time that day.’”
At first the idea a mere soccer game would interfere with productivity was a complete culture shock but she soon became a convert to the game.
“In Argentina, in Buenos Aires, I never saw the streets so empty as when there was a big game on,” she says. “I worked all over Latin America and Mexico and in Europe too. At one point we realized that because a game was on there would be no one to run the production line at one of our factories. It seemed absurd that a soccer game would shut down a line but we had to do something to accommodate the employees. We set up TVs in the common area so they could watch the game.”
P&G employees this time around across the globe will be encouraged to come to the common areas to watch games on TV.
“It’s a two for one,” says Doniz. “One, it’s good from an employee moral aspect. You have young people, older workers, everyone, sharing a moment together. In fact, it becomes strange if they stay in their cubicles and don’t socialize. And of course, it means the network isn’t getting slowed down.”
It also cuts across all levels, she adds, meaning it’s truly a moment shared in fun and not fabricated.
“I think our Canadian CIO is Italian so I’m betting he’s going to be watching with everyone too.”
Labels: Soccernomics
posted @ 8:54 AM,
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Pakistan Out of 2010 FIFA Football World Cup
Unlike the 2006 FIFA World Cup, when Pakistan was represented in each and every game of the world’s premier sporting tournament - in the shape of Pakistani manufactured footballs - Pakistan will be missing in action at the 2010 FIFA Football World Cup that starts in South Africa later this week. This year’s official match football for the World Cup - Jabulani or Jo’bulani (manufactured by Adidas and meaning ‘to celebrate’ in Zulu - will come from China, not Pakistan.
Pakistani footballs, of course, have a long history of being kicked around in Football World Cup tournaments. From the iconic Telstar (which was the first designated official game ball, at the 1970 Mexico World Cup and then at the 1974 World Cup in Germany) to the even more iconic Tango (the official ball of the 1978 and 1982 World Cups in Argentina and Spain), and even at the last World Cup in 2006 in Germany, hand-stitched, high-performance from Pakistan - really from Sialkot - have been the preferred choice for Adidas, the official providers of match balls to the FIFA World Cups.
No longer so, it seems. Indeed, from once commanding as much as 85% of the world’s market in footballs, Pakistani manufacturers now believe that they will supply no more than 30-40 percent of the footballs sold around this mega-event. Pakistan, of course, is not a football power at all - ranked 165th out of 202 countries in the world. But like everywhere else, football fever can get high in Pakistan too ( here and here). This year, however, we would no longer be kicked around on the FIFA World Cup soccer fields.
This should be read not just as a matter of national pride, but as yet another sign of the changing global economic landscape, Pakistan’s sliding economic fortunes, and a need to focus more deeply on Pakistan’s enterprise-level economic structures than we often do.
The most commonly cited reason for Pakistan’s dwindling football fortunes is the use of child labor in the football industry. Even though the practice is now far less than it used to be, there are still instances of it and the stigma has lingered. In this particular case, technology may also have a lot to do with it. The new ball is being described in technological rather than craft terms: “The newly developed 'Grip'n'Groove' profile provides the best players in the world with a ball allowing an exceptionally stable flight and perfect grip under all conditions. Comprising only eight, completely new, thermally bonded 3-D panels, which for the first time are spherically molded, the ball is perfectly round and even more accurate than ever before.” And, of course, Pakistan’s security situation also must have had some impact in perceptions.
An good overview report of the football manufacturing industry in Pakistan was recently published in The Express Tribune:
Soccer or football is the most popular sport in the world. And for many, this means great economic opportunity. At one time, Pakistan's export city of Sialkot was catering to 85 per cent of the total world demand for high-quality hand-stitched inflatable balls.
A workforce of 85,000 was employed to produce 60 million balls per year worth $210 million. In Fifa World Cup years the demand for stitched balls rises by 70 per cent. Consecutive governments however, ignored this industry and failed to plan ahead to tackle the growing competition from China, India and Japan.
For a long time this vital industry also faced criticism from European countries and especially from United States with allegations of using child labour. The Sialkot Chamber of Commerce and Industry took prompt measures to curb child labour from the soccer ball industry in accordance with the Atlanta Agreement signed with the International Labour Organisation (ILO) and Unicef in February 1997.
It is estimated that some 93 per cent of child labour was progressively eradicated from this vital industry and necessary steps were taken to provide social protection to children and their families. The children who were associated with this industry were provided with good schooling. The vital steps taken by the soccer manufacturers and exporter were highly praised by the then United States President Bill Clinton in the address at the ILO convention at Geneva in June 1999.
The Sialkot football industry has been contributing millions of export dollars to the national kitty but in the year 2006 the industry's share in the international market took a significant hit with the entry of new players in the market, notably China and India. Manufacturers from these countries were able to supply balls at a much cheaper rate.
According to industry sources, local soccer ball manufacturers have been able to grab around 30 to 40 per cent of the total orders floated globally for the upcoming Fifa World Cup. This is a sharp decline from the 70-80 per cent bagged during the 1998 and 2002 World tournaments. The local football industry earned $164 million in export earnings in the financial year 09, as against an average of $221 million per annum earned during financial years 2005-08. Power and gas shortage are not making it any easier for the industry, and sources say that a number of business have failed to meet deadlines which has dented their reputation.
Technology was also a major factor in tilting the balance against the local industry. The penetration of machine-made balls hit the Sialkot hand made stitched soccer industry.
And in the present scenario of fast growing globalisation hand-stitched balls will not be able to compete with machine-made footballs. It is important that the local industry moves forward and embraces new technology to meet the needs of the international market.
Industry sources also say that China has received large export orders of footballs from a number of countries ahead of the June 2010 Football World Cup. Pakistan Sports Goods Manufacturers and Exporters Association is rightly concerned over this state of affairs.
According to Arif Mehmood Sheikh, a former chairman (PSGMEA) the shift of a large number of orders to China should serve as an 'eye opener' for every one. He said that the factors behind the diversion of export orders to China was a combination of rising cost of production and inability to meet deadlines, which in turn were caused by rising POL prices and unreliable power supply. This has made it difficult for Sialkot exporters to compete with manufacturers in China, India, Nepal and Thailand.
With the government looking for new avenues to bridge the fiscal deficit and the trade deficit, it is very important that measures be taken to build upon the advantages that Pakistan holds in the global market, and not allow others to encroach upon them. The Sialkot exporters have urged the government to come up with some sort of trade related package to stop the diversion of football export orders through the Trade Development Authority, likewise enforcing suitable measures to encourage the export of hand stitched fooballs.
Outdated manufacturing techniques still in use by the local industry is a major hurdle in enhancing exports. This industry for its survival is in dire need of advanced technology and early provisioning of skilled labour. The Sialkot manufacturers and exporters have realised that in the event of a change in the global trend from hand stitched balls to mechanically stitched balls they will also need to make the shift.
In order to cope with the menace of machine made balls, the Small and Medium Enterprise Development Authority has at put in place the final steps for the establishing of the Sports Industries Development Centre. It is expected that this project worth Rs435 million will enable the Sialkot sports manufacturing industry to adopt modern technology, without which there is no going forward.
Sad as this situation is, I intend to follow the World Cup in South Africa, as will so many other Pakistanis. Probably no where more so than in Lyari - a community whose passion for soccer is boundless.
Labels: Ball, Industry, Soccernomics
posted @ 8:47 AM,
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FIFA World Cup South Africa - 2010
Wednesday, June 9, 2010
The stage is set for football lovers for the biggest event in history of the sports where teams from 32 countries are going to battle hard to prove their worth. FIFA World Cup 2010 is being played in South Africa, from June 11 to July 11, 2010 and football fans have already gathered there to watch the thrilling game and the rest are glued to different media channels to find what is happening.
The passion for Football is certainly sweeping every one in Pakistan this time, particularly the sportsmen and the youth. In addition to conventional media, Pakistani football fans are going online to find all sorts of information about the championship, including multimedia content such as brief video clips of stars and highlights from games from earlier championships. Many Internet sites have sprung up which are reporting each and every thing about the World Cup. "The hype this time is of an entirely different order," says Zahir Khan, footballer and a student in Business and Information Technology.
Earlier football fan frenzy started when the 18 carat gold FIFA World Cup Trophy was taken on whirlwind global tour jointly organized by FIFA and a beverage company where it received an unprecedented welcome. Commencing on 21 September 2009, from Zurich - the home of FIFA - the Trophy Tour has undertaken an exciting journey, making history along the way by visiting 50 African cities from Abidjan, Ivory Coast to Yaounde, Cameroon. The Trophy was greeted by passionate football fans in 34 countries around the world, from established football nations including Brazil, Italy and England to countries where fan enthusiasm is growing such as New Caledonia, Malaysia and Kazakhstan. FIFA World Cup winners including Pele, Lothar Matthaus, and Christian Karembeu have shared in the Trophy Tour experience along with fans around the world who have enjoyed the FIFA World Cup Trophy Tour celebrations. Not only that, welcoming the magic of the FIFA World Cup to their countries, 44 heads of state have made time in their schedules to greet the prestigious Trophy's arrival.
The tour gives an idea that FIFA is cottoning on to the idea of an equivalent to the Olympic Torch for football. Two years ago, instead of being carried by athletes to the Olympic Games in Greece, the torch made a tour of all the countries that had hosted the games. This year, the World Cup trophy was taken from country to country before it finally reached in Germany. It is not just visiting the countries which have hosted the tournament, but the idea seems to be along the lines of Olympic Torch.
Pakistani fans are very alive to the World Cup and are looking forward to it. When asked about their favorites, many replied, "Brazil is the favorites to win the World Cup. Spain will try hard for the top honor, but Brazil is the main candidates because of their players' abilities and because of their recent performances. Aamir Bashir says, "I have no doubts that Brazil will be at the top. I wish to be at Soccer City Stadium in Johannesburg where the final will be played on 11 July 2010, but it is costly for me."
"Being a Pakistani, I expect Pakistan to play and win," said Kamran Mirza, “but when Pakistan is not playing, I will still watch the game with concentration and enjoy without accompanying tension and verbal duel of traditional rivalries as are seen in Indo-Pak cricket series.”
“We Pakistanis are used to kind of sporting atmosphere, with fans rapt to the game, extremely cheering for players and teams," says Taha Riaz, player and an ardent football fan, "It is always a joy to see international tournaments and understand the game. Seeing my favorite stars at their best improves my own game." That is why football fans from around the world will watch the World Cup even if their own teams are not participating.
Tahir Abbas, an ex army football color holder has his 15-year-old son Mubarak who has got the love for the game from his father. Most of his friends play the game in a satellite colony where they live and have a football ground nearby. "I will certainly be following World Cup," he says enthusiastically. I asked him how many of his friends would be following the World Cup. "Oh, about 20, and my father has invited them to come a watch the matches at our home," was his answer. His father told, "Mubarak's interest in football is due to my own passion for the game mainly and our stay in cantonments where this game is regularly played.
Tahir Abbas is disappointed that our country is not participating in FIFA World Cup in South Africa. For Pakistan he says, "as far as the future is concerned, we have great potentials. Some talent hunt, some sponsorship from public and well as private sectors may take Pakistan in next championships."
Great supporting events have different impact on economies too. Remember closed bazaars and low turn-out in offices and educational institutions on the eve of India Pak cricket matches across the country in the past. South Africa will have upward economic surge due to large number of foreigner fans coming to watch World Cup in the country. On the other hand it is feared that the World Cup finals might have negative impact on some economies. During the 2002 World Cup (May 31-June 30), the Stock Exchange of Thailand slipped 4.34 percent. In Singapore, when England played Nigeria at the last World Cup, turnover on the market plunged and the Straits Times Index fell 11 points on a lack of buying interest.
"This time we are expecting dwindling sale during the Word Cup. Which is why we are putting up big screen TVs for the customers to sit and watch the game," says manager of a reputed café on M M Alam Road, Lahore. "Football fans are already enquiring about when we will put up a multimedia for the Word Cup as we do for cricket," he adds. Many other cafes and posh eating joints across the country are putting up bigger screen televisions to attract the Word Cup enthusiasts.
Athar Mahmood, good football player of his own time and father of two promising football players says, "Football is one of the greatest and most powerful filed activities. It is an economical activity as well. The amount of money and trade passed during Word Cups is remarkable. So many sports retailers, shops, transport channels and restaurants do good business during the championship; football creates many potential jobs for those who have that unique gift. Football gives our children hope and dreams. In places such as Brazil and even Cameroon, people love the beautiful game. We too should encourage others to become involved in the game. I can see footie fever striking Pakistan like cricket, hockey in near future."
Representation of Pakistan – once a credible ‘footballing’ nation, grinding its way into Asia's top 10 with players in demand from league clubs in different countries - in the 2010 World Cup is limited only to providing the hand stitched "Made in Sialkot" balls for the game and the attendance of few officials at the opening ceremony.
Unlike cricket that can be played on streets, football game needs wider grounds. And there is dearth of open spaces and grounds in our cities. That is one of the reasons that this game has not been popular in the past. But "football craze is picking up here too. There are many ardent fans who are looking forward to the Word Cup, for entertainment if nothing else," says Waqar Haider, manager marketing in an international concern who was on Lahore School of Economics team in his own times. Sports are often referred to as the world's finest form of entertainment. They are healthy social activities that hold the attention of an audience as well as its participants. "Football does it best," Waqar adds".
I am going to spend my time immersing myself in the world's most amusing and impulsive drama: Word Cup 2010. You are invited. [From Here]
Labels: Fans, Football, Soccer, Soccernomics
posted @ 7:17 PM,
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Soccernomics
Call it Money ball for soccer: journalist Kuper (Soccer against the Enemy, 2006) and economist Szymanski (Fans of the World, Unite! 2008) apply cold, hard facts to our commonly held beliefs about the beautiful game and tell us that everything we think we know is wrong. England’s national team doesn’t underachieve (if anything, given its size, location, and talent pool, it overachieves); paying big money for hot players isn’t a good idea (usually, the players’ exertions mean they’ll underperform next year); and soccer clubs make terrible (though remarkably durable) businesses. Unlike Kuper’s more sober Soccer against the Enemy, there’s a teasing playfulness, almost braggadocio, here, as the authors burst bubble after bubble using the words, “We have the data to answer this question.” As they acknowledge, some fans will resist subjecting long-held emotional attachments to the cold light of statistical analysis. And some may argue their findings: just as Billy Beane’s Oakland A’s are coming off their third losing season, author-praised AC Milan is off to a terrible start. But whether analyzing the relationship of spending to winning or applying game theory to the penalty kick, the authors’ delight in discovery proves both persuasive and contagious. It’s a fascinating book with the potential to effect genuine change in the sport. --Keir Graff
Related: Economic Impact of World Cup
Labels: Books, Soccernomics
posted @ 6:57 PM,
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